- The Australian dollar witnessed strong buying pressure following the release of stellar Australia’s labour market report.
- Australia's jobs data was upbeat across most major indicators, against expectations of a minor correction.
- The economy added 52.1K in full time jobs, while the jobless rate dropped to 5.5%. Meanwhile, the participation rate improved to 64.9%.
- AUD/USD pared overnight FOMC-led losses and hit session highs at 0.7631.
- The pair has shown decisive break above major resistance at 0.7555 (100-DMA) raising scope for test of trendline resistance at 0.7730.
- Momentum on weekly charts is bullish. Price action is above weekly cloud and RSI and Stochs are biased higher.
Support levels - 0.76, 0.7588 (61.8% Fib 0.7749 to 0.7328 fall), 0.7556 (100-DMA)
Resistance levels - 0.7632 (Mar 7 high), 0.7659 (78.6% Fib), 0.7730 (trendline)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-largely-muted-on-slightly-upbeat-China-data-dump-hovers-around-200-DMA-bias-neutral-754439) has hit all targets.
Recommendation: Good to go long on dips around 0.76, SL; 0.7550, TP: 0.7660/ 0.77/ 0.7730.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 38.9514 (Neutral), while Hourly USD Spot Index was at -74.3108 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
